November 15, 2023: The senior population share is expected to increase from about 10% in 2023 to about 20% by 2050, resulting in an increased age dependency ratio of around 34% by 2050, according to a JLL report. With a current population of over 100+ million seniors in India, the senior living sector holds immense potential for investment and development, as mentioned in the report titled ‘The rise of senior living market in India’.
The report identifies the top senior living operators, including Columbia Pacific Communities, Vedaanta Group, Ashiana Group, Paranjape (Athashri), Primus, Antara, Covai Care and Prarambh Buildcon, holding a combined market share of over 50% in the overall supply.
The report stated that India’s relatively early stage in the development of the sector presents a significant opportunity for growth. Factors driving the need for senior living include the rise of nuclear families, increased mobility for career opportunities, growing demand for medical services and changing views towards the asset class. While homecare services for seniors have gained popularity in recent years, offering a comprehensive ecosystem of medical care, wellness and social bonding opportunities remains challenging. Consequently, bespoke senior living communities are gaining acceptance and popularity, the report said.
Jerry Kingsley, head of strategic consulting and value & risk advisory, India, said, “By 2050, the elderly population in India is projected to reach 20%, resulting in an increased age dependency ratio. Leading senior living projects indicate that 84% of the existing supply consists of independent living units, with a preference for outright sale models. Additionally, about 43% of the supply comprises 2BHK units, reflecting the prevailing product typology.” He further added, “Currently, the senior living market penetration in India is less than 1%, as compared to over 6% in mature markets like the US. In India, southern cities account for a significant share of the senior living market at around 68%, followed by 14% in the west, 10% in the north, 4% in the east and 2% in central India. This can be attributed to the presence of superior healthcare infrastructure, strong connectivity and favourable climatic conditions in these regions.”
The report highlighted that the increasing elderly population will have significant sociological implications and drive a greater need for elder care. Today’s seniors are financially stable, well-travelled, socially connected and have specific preferences for post-retirement living. Factors such as the growing elderly population, rise of nuclear families, increasing medical needs and the post-retirement relocation of NRIs contribute to the demand and growth opportunities in the senior living sector. Senior living projects are commanding an average premium of around 10-15% over regular residential pricing due to customised amenities for seniors.
To facilitate market expansion, government support in the form of insurance and subsidised loans is crucial for buyers of senior living projects. Additionally, developers require incentives and policies from the government to tap into the growing trend of early retirement in India, similar to the mature senior living markets.
See also: Things to consider before investing in a senior home
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